Correlation Between Baoshan Iron and Hangzhou EZVIZ
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By analyzing existing cross correlation between Baoshan Iron Steel and Hangzhou EZVIZ Network, you can compare the effects of market volatilities on Baoshan Iron and Hangzhou EZVIZ and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Baoshan Iron with a short position of Hangzhou EZVIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baoshan Iron and Hangzhou EZVIZ.
Diversification Opportunities for Baoshan Iron and Hangzhou EZVIZ
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baoshan and Hangzhou is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Baoshan Iron Steel and Hangzhou EZVIZ Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou EZVIZ Network and Baoshan Iron is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Baoshan Iron Steel are associated (or correlated) with Hangzhou EZVIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou EZVIZ Network has no effect on the direction of Baoshan Iron i.e., Baoshan Iron and Hangzhou EZVIZ go up and down completely randomly.
Pair Corralation between Baoshan Iron and Hangzhou EZVIZ
Assuming the 90 days trading horizon Baoshan Iron Steel is expected to generate 0.64 times more return on investment than Hangzhou EZVIZ. However, Baoshan Iron Steel is 1.56 times less risky than Hangzhou EZVIZ. It trades about 0.03 of its potential returns per unit of risk. Hangzhou EZVIZ Network is currently generating about -0.02 per unit of risk. If you would invest 676.00 in Baoshan Iron Steel on September 27, 2024 and sell it today you would earn a total of 35.00 from holding Baoshan Iron Steel or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baoshan Iron Steel vs. Hangzhou EZVIZ Network
Performance |
| Timeline |
| Baoshan Iron Steel |
| Hangzhou EZVIZ Network |
Baoshan Iron and Hangzhou EZVIZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baoshan Iron and Hangzhou EZVIZ
The main advantage of trading using opposite Baoshan Iron and Hangzhou EZVIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baoshan Iron position performs unexpectedly, Hangzhou EZVIZ can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hangzhou EZVIZ will offset losses from the drop in Hangzhou EZVIZ's long position.| Baoshan Iron vs. Wanhua Chemical Group | Baoshan Iron vs. Shandong Gold Mining | Baoshan Iron vs. Rongsheng Petrochemical Co | Baoshan Iron vs. Inner Mongolia BaoTou |
| Hangzhou EZVIZ vs. Hubeiyichang Transportation Group | Hangzhou EZVIZ vs. Hengli Petrochemical Co | Hangzhou EZVIZ vs. Sichuan Fulin Transportation | Hangzhou EZVIZ vs. RoadMain T Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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